• Sat. Apr 20th, 2024

TD Bank Settles Ponzi Scheme Lawsuit for $1.2 Billion


Feb 28, 2023
TD Bank Settles Ponzi Scheme Lawsuit for $1.2 Billion


In 2012, Allen Stanford was convicted of 13 fraud-related charges in Houston and was sentenced to 110 a long time in jail. But the circumstance — a Ponzi scheme that saw Stanford selling billions of dollars worthy of of fraudulent certificates of deposit by his offshore lender Stanford Worldwide Financial institution Ltd. — wasn’t above. It finished this 7 days when TD Bank agreed to shell out $1.2 billion in settling a lawsuit that alleged it gathered millions in Canadian and American forex whilst ignoring evidence one thing fishy was going on with Stanford’s bank in Antigua.

CNN quoted from a TD Bank statement, which said in element that it “expressly denies any legal responsibility or wrongdoing with regard to the multi-yr Ponzi plan operated by Stanford and tends to make no admission in connection to any Stanford matter as section of the settlement.” The bank’s assertion mentioned it “offered largely correspondent banking expert services to Stanford Worldwide Financial institution Confined and maintains that it acted correctly at all occasions.”

The settlement averted a demo that was slated to start out Monday in Houston. TD settled for the most major quantity, but Impartial and HSBC banking institutions ended up tapped for $100 million and $40 million, respectively. CNN reviews that in addition to TD, HSBC, and Independent, investors thought Trustmark and Societe Generale Private Banking must have been mindful of Stanford’s alleged scheme, and deficiency of motion on their portion amounted to taking part in a job in perpetrating the rip-off above two a long time.

Trustmark and Societe Generale settled their areas of the circumstance for a merged $257 million previously in 2023.

Stanford allegedly ran what amounted to a traditional Ponzi scheme. Even though telling buyers that their certificates of deposit had been bringing 3 to 4% bigger returns than the U.S. nationwide ordinary and promising dependable investment decision techniques, Allen Stanford was lining his pockets with their revenue, reportedly possessing many properties in the U.S. and the Caribbean.

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